TMI Blog2009 (5) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... s the expression derived from the export of articles. But it is not the end of the matter. The expression profits derived from export of articles or things or computer software as employed in sub-section (1) or (1A) has been given a specific meaning in sub-section (4). Once the expression derived from having restricted scope has been specifically defined in the same section, then the meaning of such expression as understood in common parlance will not be applicable. Rather the specific meaning given to it will come into play. We further note that sub-section (4) has been worded on the pattern of section 80-IA, prior to its substitution with effect from 1-4-2000, which referred to profits and gains derived from any business of an indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eri (East), Mumbai-400 096. Return was filed declaring total income at Rs. 18,02,187. The assessee had claimed deduction under section 10A. On the perusal of the details of bank interest, the Assessing Officer noticed that the assessee had debited interest to the tune of Rs. 95,36,873.46 to its Profit and Loss Account after netting off of interest received on fixed deposits of Rs. 9,00,961 against the bank interest paid at Rs. 1,04,37,835. The assessee was show-caused to explain as to why deduction be not denied under section 10A in respect of interest received on fixed deposit. After considering the assessee s submission the Assessing Officer observed that the interest income on fixed deposits was in the nature of "income from other source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under section 10A in respect of the interest income. In the opposition the learned Departmental Representative strongly relied on the impugned order. It was submitted that the interest earned on FDRs was neither business income nor eligible for deduction under section 10A. 4. We have heard the rival submissions in the light of material placed before us and precedents relied upon by the parties before us and the departmental authorities below. In order to consider whether or not the deduction is available under section 10A on the interest income, it is apt to note the relevant part of section 10A(1) which reads as under : "(1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itlement. The Hon ble Supreme Court held that the sale consi-deration of import entitlement cannot be held to constitute profits and gains derived from the assessee s industrial undertaking for the purpose of computing deduction under section 80HH as the source of import entitlement is the export promotion scheme of the Central Government and not the industrial undertaking. Same view has been reiterated by the Hon ble Supreme Court in the case of Hindustan Lever Ltd. v. CIT [1999] 239 ITR 297. More recently the Hon ble Supreme Court in the case of Pandian Chemicals Ltd. v. CIT [2003] 262 ITR 278 considered the question of deduction under section 80HH in respect of interest on deposits with the Electricity Board, in which again the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h articles or things or computer software bears to the total turnover of the business carried on by the undertaking. By providing for considering the profits of the business of the undertaking , the position has been made clear that the restricted general meaning given to eligible profits as derived from the export of articles in sub-section (1) has been given a go by in sub-section (4) and the scope of the benefit has been expanded by extending to the all profits of the business carried on by the undertaking. Once the expression derived from having restricted scope has been specifically defined in the same section, then the meaning of such expression as understood in common parlance will not be applicable. Rather the specific meaning gi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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